By Sarah Qureshi
(Reuters) – Gold prices rose more than 1% on Tuesday as the U.S. dollar weakened further and stocks slipped amid uncertainty over U.S. tariff policy and a potential ceasefire between Russia and Ukraine.
Spot gold was up 1.7% at $3,284.74 an ounce by 1345 ET (1745 GMT). U.S. gold futures settled 1.6% higher at $3,284.6.
The dollar slipped again on Tuesday, weighed down by the Federal Reserve’s caution over the economy, having sold off broadly on Monday after ratings agency Moody’s downgraded the U.S. sovereign rating, one notch down from “Aaa” to “Aa1” on Friday due to concerns about the nation’s growing debt.
A softer dollar makes bullion cheaper for buyers holding other currencies. [USD/]
“There’s still a level of uncertainty out in the market. Most notably, the Moody’s downgrade, weakening dollar have supported the precious metals complex overall,” said David Meger, director of metals trading at High Ridge Futures.
U.S. stocks eased as investors focused on a critical vote in Washington over U.S. President Donald Trump’s sweeping tax cuts.
Bullion is considered a safe asset during periods of geopolitical and economic uncertainties.
“Gold will have serious resistance at $3,350 with some minor resistance at $3,300. We are trading in the new range of $3,150 to $3,350,” said Phillip Streible, chief market strategist at Blue Line Futures.
Ongoing tensions between Russia and Ukraine are more of a factor for platinum and palladium, Meger said, as no potential deal could mean a lesser supply on the market coming from Russia. Russia is the world’s biggest palladium producer and the second biggest platinum producer.
The EU and Britain announced new sanctions against Russia on Tuesday without waiting for the U.S. to join them, a day after President Donald Trump spoke to Vladimir Putin but was unable to extract a promise for a ceasefire in Ukraine.
Platinum reached its highest since October 2024, climbing 5% to $1,048.05. Palladium rose 4.2% to $1,015.58, its highest since February 4.
Spot silver rose 2.1% to $33.01.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Jan Harvey, Shailesh Kuber and Vijay Kishore)
